In last week’s post we wondered if the real estate market on Cape Cod was shifting. We only had anecdotal evidence based on our own experience and that of our colleagues to suggest that there seemed to be a change.
Now, we have the official stats from the Cape Cod and Island Association of Realtors that suggests something may be going on.
The biggest evidence is a drop of $30,000 in median sales price for a single family home from May ($630,000) to June ($600,000) across Barnstable County. So, while the final sale price as a percentage of list has remained steady (104%), the actual dollar amount decreased.
It’s important to note that a year to date comparison from 2020 to 2021 shows a nearly 35% increase in median sales price overall. ($447,500 vs. $603,000.)
Inventory increased last month (502) from the previous (448). While this is still less than what a usual supply of single family homes needs to be, it’s trending in a positive direction. The Cape now has 1.2 month supply of available homes. At least three months is needed to be considered even reasonably healthy.
So what does this mean?
For buyers — particularly those who dropped out of the market after being frustrated with long lines at open houses and price competitions that they couldn’t win — this could be a good sign. If you were among the discouraged, it might be time to re-start your search.
For sellers — as we’ve been suggesting for weeks now — your return on investment is potentially shrinking. While we’re continuing to see most offers come in above list price, they’re generally not at the numbers or mind boggling levels that we saw just a few months ago. The time for you to act is now, as competition is increasing with more homes coming on the market.
If you’re wondering about where you will move if you sell, the larger inventory is also a positive for you.
Is this a temporary slowdown because of buyer fatigue and distractions due to weddings, graduations, and vacation planning? Or is something else at work? Time will tell, but smart real estate investors — sellers or buyers — should take note.
As always, we’re happy to help you review your options. We’ve been helping our clients make the best decisions for themselves for more than 20 years.
We’re honored that so many have turned to us this year. Through the first six months of 2021, we rank second out of Today Real Estate’s 100 agents in terms of closed purchases. (Arguably, we’re first, as #1 is a team of six that has led the Today roster for years.)
So, let’s connect soon at 508-568-8191 or email@example.com.
Don’t wish for it; go for it!
Mari and Hank